What changed in LifeStance Health Group, Inc.'s 10-K — 2024 vs 2025
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Paragraph-level year-over-year comparison of LifeStance Health Group, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.
+113 added−113 removedSource: 10-K (2026-02-25) vs 10-K (2025-02-27)
Top changes in LifeStance Health Group, Inc.'s 2025 10-K
113 paragraphs added · 113 removed · 98 edited across 1 sections
- Item 1C. Cybersecurity+113 / −113 · 98 edited
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
98 edited+15 added−15 removed123 unchanged
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
98 edited+15 added−15 removed123 unchanged
2024 filing
2025 filing
Biggest changeFuture acquisitions or divestitures may impact jurisdictions in which the Company operates which may impact the jurisdictions in which the Company is subject to income tax. 46 Results of Operations Comparison of the Years Ended December 31, 2024 and 2023 The following table sets forth a summary of our financial results for the periods indicated: Year Ended December 31, 2024 2023 2022 (in thousands) TOTAL REVENUE $ 1,250,970 $ 1,055,665 $ 859,542 OPERATING EXPENSES Center costs, excluding depreciation and amortization shown separately below 848,571 753,569 622,525 General and administrative expenses 363,062 410,793 377,993 Depreciation and amortization 70,950 80,437 69,198 Total operating expenses $ 1,282,583 $ 1,244,799 $ 1,069,716 LOSS FROM OPERATIONS $ (31,613 ) $ (189,134 ) $ (210,174 ) OTHER EXPENSE Gain (loss) on remeasurement of contingent consideration 1,725 3,972 (1,688 ) Transaction costs (827 ) (89 ) (722 ) Interest expense, net (26,535 ) (21,220 ) (19,928 ) Other expense (363 ) (112 ) (218 ) Total other expense $ (26,000 ) $ (17,449 ) $ (22,556 ) LOSS BEFORE INCOME TAXES (57,613 ) (206,583 ) (232,730 ) INCOME TAX BENEFIT 170 20,321 17,166 NET LOSS $ (57,443 ) $ (186,262 ) $ (215,564 ) Total Revenue Total revenue increased $195.3 million, or 19%, to $1,251.0 million for the year ended December 31, 2024 from $1,055.7 million for the year ended December 31, 2023.
Biggest changeFuture acquisitions or divestitures may impact jurisdictions in which the Company operates which may impact the jurisdictions in which the Company is subject to income tax. 46 Results of Operations Comparison of the Years Ended December 31, 2025 and 2024 The following table sets forth a summary of our financial results for the periods indicated: Year Ended December 31, 2025 2024 2023 (in thousands) TOTAL REVENUE $ 1,424,285 $ 1,250,970 $ 1,055,665 OPERATING EXPENSES Center costs, excluding depreciation and amortization shown separately below 963,186 848,571 753,569 General and administrative expenses 382,198 363,062 410,793 Depreciation and amortization 54,753 70,950 80,437 Total operating expenses $ 1,400,137 $ 1,282,583 $ 1,244,799 INCOME (LOSS) FROM OPERATIONS $ 24,148 $ (31,613 ) $ (189,134 ) OTHER EXPENSE Gain on remeasurement of contingent consideration — 1,725 3,972 Transaction costs — (827 ) (89 ) Interest expense, net (11,662 ) (26,535 ) (21,220 ) Other expense (123 ) (363 ) (112 ) Total other expense $ (11,785 ) $ (26,000 ) $ (17,449 ) INCOME (LOSS) BEFORE INCOME TAXES 12,363 (57,613 ) (206,583 ) INCOME TAX (PROVISION) BENEFIT (2,700 ) 170 20,321 NET INCOME (LOSS) $ 9,663 $ (57,443 ) $ (186,262 ) Total Revenue Total revenue increased $173.3 million, or 14%, to $1,424.3 million for the year ended December 31, 2025 from $1,251.0 million for the year ended December 31, 2024.
Our Primary Care and Specialist Physician Referral Relationships We have built a powerful patient referral network through partnerships with primary care physicians and specialist physician groups across the country. We deliver value to our provider partners by offering a more efficient referral pathways, delivering improved outcomes for our shared patients, and enabling more integrated care and lower total healthcare costs.
Our Primary Care and Specialist Physician Referral Relationships We have built a powerful patient referral network through partnerships with primary care physicians and specialist physician groups across the country. We deliver value to our provider partners by offering more efficient referral pathways, delivering improved outcomes for our shared patients, and enabling more integrated care and lower total healthcare costs.
During the years ended December 31, 2024 and 2023, we continued a process of evaluating and adopting critical enterprise-wide systems for (i) human resources management, (ii) clinician credentialing and onboarding process, and for the year ended December 31, 2023, (iii) a scalable electronic health resources system.
During the years ended December 31, 2024 and 2023, we continued a process of evaluating and adopting critical enterprise-wide systems for (i) human resources management, (ii) clinician credentialing and onboarding process, and for the year ended December 31, 2023, evaluating (iii) a scalable electronic health resources system.
These IT deficiencies did not result in a material misstatement to our consolidated financial statements; however, the deficiencies, when aggregated, could impact maintaining effective segregation of duties, as well as the effectiveness of IT-dependent controls (such as automated controls that address the risk of material misstatement to one or more assertions, along with the IT controls and underlying data that support the effectiveness of system-generated data and reports) that could result in misstatements potentially impacting all financial statement accounts and disclosures that would not be prevented or detected.
These IT deficiencies did not result in a material misstatement to our consolidated financial statements; however, the deficiencies, when aggregated, could impact maintaining effective segregation of duties, as well as the effectiveness of IT-dependent controls (such as automated controls that address the risk of material misstatement to one or more assertions, along with the IT 52 controls and underlying data that support the effectiveness of system-generated data and reports) that could result in misstatements potentially impacting all financial statement accounts and disclosures that would not be prevented or detected.
Borrowings under the 2022 Credit Agreement were subject to variable interest at a rate per annum equal to (x) adjusted term SOFR (which adjusted term SOFR is subject to a minimum of 0.75%) plus an applicable margin of 4.50% or (y) an alternate base rate (which will be the highest of (i) the prime rate, (ii) 0.50% above the federal funds effective rate and (iii) one-month adjusted term SOFR (which adjusted term SOFR is subject to a minimum of 0.75%) plus 1.00%) plus an applicable margin of 3.50%.
Borrowings under the 2022 Credit Agreement were subject to variable interest at a rate per annum equal to (x) adjusted term SOFR (which adjusted term SOFR is subject to a minimum of 0.75%) plus an applicable margin of 4.50% or (y) an alternate base rate 48 (which will be the highest of (i) the prime rate, (ii) 0.50% above the federal funds effective rate and (iii) one-month adjusted term SOFR (which adjusted term SOFR is subject to a minimum of 0.75%) plus 1.00%) plus an applicable margin of 3.50%.
We believe these efforts will help to further align our model with that of other healthcare providers, increasing our value to them and driving new opportunities to partner to grow our patient base and revenue opportunities. 41 Our Payors Our payor relationships, including national contracts with multiple payors, allow access to our services through in-network coverage for their members.
We believe these efforts will help to further align our model with that of other healthcare providers, increasing our value to them and driving new opportunities to partner to grow our patient base and revenue opportunities. Our Payors Our payor relationships, including national contracts with multiple payors, allow access to our services through in-network coverage for their members.
The SVP of IT Security reports quarterly to the Audit Committee and such report addresses overall assessment of the Company’s compliance with this and other cybersecurity policies, including topics such as risk assessment, risk management and control decisions, service provider arrangements, test results, security incidents and responses, recommendations for changes and/or updates to policies and procedures . 36 Item 2 .
The SVP of IT Security reports quarterly to the Audit Committee and such report addresses overall assessment of the Company’s compliance with this and other cybersecurity policies, including topics such as risk assessment, risk management and control decisions, service provider arrangements, test results, security incidents and responses, recommendations for changes and/or updates to policies and procedures . Item 2 .
We define Adjusted EBITDA as net loss excluding interest expense, depreciation and amortization, income tax benefit, (gain) loss on remeasurement of contingent consideration, stock-based compensation, loss on disposal of assets, transaction costs, executive transition costs, litigation costs, strategic initiatives, real estate optimization and restructuring charges, amortization of cloud-based software implementation costs, and other expenses.
We define Adjusted EBITDA as net income (loss) excluding interest expense, depreciation and amortization, income tax provision (benefit), gain on remeasurement of contingent consideration, stock-based compensation, loss on disposal of assets, transaction costs, executive transition costs, litigation costs, strategic initiatives, real estate optimization and restructuring charges, amortization of cloud-based software implementation costs, and other expenses.
Unanticipated events or circumstances may occur that could affect the accuracy or validity of such assumptions, estimates or actual results. Recently Adopted and Issued Accounting Pronouncements Recently issued and adopted accounting pronouncements are described in Note 2 to our audited consolidated financial statements included elsewhere in this Annual Report. 51 Item 7A .
Unanticipated events or circumstances may occur that could affect the accuracy or validity of such assumptions, estimates or actual results. Recently Adopted and Issued Accounting Pronouncements Recently issued and adopted accounting pronouncements are described in Note 2 to our audited consolidated financial statements included elsewhere in this Annual Report. Item 7A .
The implicit price concessions included in estimating the transaction price represent the difference between amounts billed to patients and the amounts we expect to collect based on its 50 collection history with those patients. Patients who meet our criteria for discounted pricing are provided care at amounts less than established rates.
The implicit price concessions included in estimating the transaction price represent the difference between amounts billed to patients and the amounts we expect to collect based on its collection history with those patients. Patients who meet our criteria for discounted pricing are provided care at amounts less than established rates.
We seek to grow our Center Margin through a combination of (i) growing revenue through clinician hiring and retention, patient growth and engagement, hybrid virtual and in-person care, existing office expansion, and in-network reimbursement levels, and (ii) leveraging on 42 our fixed cost base at each center.
We seek to grow our Center Margin through a combination of (i) growing revenue through clinician hiring and retention, patient growth and engagement, hybrid virtual and in-person care, existing office expansion, and in-network reimbursement levels, and (ii) leveraging on our fixed cost base at each center.
Therefore, Center Margin is computed by removing from loss from operations the costs that do not directly relate to the delivery of care and only including center costs, excluding depreciation and amortization. We consider Center Margin to be an important measure to monitor our performance relative to the direct costs of delivering care.
Therefore, Center Margin is computed by removing from income (loss) from operations the costs that do not directly relate to the delivery of care and only including center costs, excluding depreciation and amortization. We consider Center Margin to be an important measure to monitor our performance relative to the direct costs of delivering care.
We believe Center Margin is useful to investors to measure whether we are sufficiently controlling the direct costs of delivering care. Center Margin is not a financial measure of, nor does it imply, profitability. The relationship of loss from operations to center costs, excluding depreciation and amortization is not necessarily indicative of future profitability from operations.
We believe Center Margin is useful to investors to measure whether we are sufficiently controlling the direct costs of delivering care. Center Margin is not a financial measure of, nor does it imply, profitability. The relationship of income (loss) from operations to center costs, excluding depreciation and amortization is not necessarily indicative of future profitability from operations.
A reconciliation of net loss to Adjusted EBITDA is presented below for the periods indicated. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view Adjusted EBITDA in conjunction with net loss.
A reconciliation of net income (loss) to Adjusted EBITDA is presented below for the periods indicated. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view Adjusted EBITDA in conjunction with net income (loss).
Therefore, non-GAAP measures should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP. Center Margin We define Center Margin as loss from operations excluding depreciation and amortization and general and administrative expenses.
Therefore, non-GAAP measures should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP. Center Margin We define Center Margin as income (loss) from operations excluding depreciation and amortization and general and administrative expenses.
Adjusted EBITDA is not intended to be a substitute for any GAAP financial measure and, as calculated, may not be comparable to companies in other industries or within the same industry with similarly titled measures of 43 performance.
Adjusted EBITDA is not intended to be a substitute for any GAAP financial measure and, as calculated, may not be comparable to companies in other industries or within the same industry with similarly titled measures of performance.
We have patients covered by 45 third-party payors, which include commercial health insurers and governmental payors under programs such as Medicare, and uninsured patients. Governmental payors and uninsured patients account for a small portion of our total revenue.
We have patients covered by third-party payors, which include commercial health insurers and governmental payors under programs such as Medicare, and uninsured patients. Governmental payors and uninsured patients account for a small portion of our total revenue.
Income Tax Benefit We account for income taxes using an asset and liability approach. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
Income Tax (Provision) Benefit We account for income taxes using an asset and liability approach. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
Acquired center integration and other are components of general and administrative expenses included in our consolidated statements of operations and comprehensive loss. Former owner fees is a component of center costs, excluding depreciation and amortization included in our consolidated statements of operations and comprehensive loss.
Acquired center integration and other are components of general and administrative expenses included in our consolidated statements of operations and comprehensive income (loss). Former owner fees is a component of center costs, excluding depreciation and amortization included in our consolidated statements of operations and comprehensive income (loss).
(5) Represents amortization of capitalized implementation costs related to cloud-based software arrangements that are included within general and administrative expenses included in our consolidated statements of operations and comprehensive loss.
(5) Represents amortization of capitalized implementation costs related to cloud-based software arrangements that are included within general and administrative expenses included in our consolidated statements of operations and comprehensive income (loss).
The 2022 Credit Agreement established commitments in respect of a senior secured term loan facility of $200.0 million, a senior secured revolving loan facility of up to $50.0 48 million and a senior secured delayed draw term loan facility of up to $100.0 million.
The 2022 Credit Agreement established commitments in respect of a senior secured term loan facility of $200.0 million, a senior secured revolving loan facility of up to $50.0 million and a senior secured delayed draw term loan facility of up to $100.0 million.
For a discussion of certain legal proceedings in which we are involved, please read Note 13, Commitments and Contingencies, to our consolidated financial statements included in Part IV, Item 15, of this Annual Report on Form 10-K, which is incorporated into this item by reference. Item 4 . Mine Safety Disclosures Not applicable. 37 PART II Item 5 .
For a discussion of certain legal proceedings in which we are involved, please read Note 12, Commitments and Contingencies, to our consolidated financial statements included in Part IV, Item 15, of this Annual Report on Form 10-K, which is incorporated into this item by reference. Item 4 . Mine Safety Disclosures Not applicable. 37 PART II Item 5 .
There can be no assurance that future inflation will not have an adverse impact on our operating results and financial condition. Item 8 . Financial Statements and Supplementary Data All information required by this item is included in Part IV, Item 15 of this Annual Report on Form 10-K and is incorporated in this item by reference. Item 9 .
There can be no assurance that future inflation will not have an adverse impact on our operating results and financial condition. 51 Item 8 . Financial Statements and Supplementary Data All information required by this item is included in Part IV, Item 15 of this Annual Report on Form 10-K and is incorporated in this item by reference.
The SVP of IT Security has operational responsibility for ensuring the adequacy and effectiveness of the company’s risk management, control and governance processes, who periodically reports to the Operational Risk Committee ("ORC"), responsible for applying the policy decisions and, in coordination with the Chief Digital Officer and Chief Executive Officer, reports to the Board of Directors at least annually or more regularly at the discretion of the ORC.
The SVP of IT Security has operational responsibility for ensuring the adequacy and effectiveness of the company’s risk management, control and governance processes, who periodically reports to the Operational Risk Committee ("ORC"), responsible for applying the policy decisions and, in coordination with the Chief Technology Officer and Chief Executive Officer, reports to the Board of Directors at least annually or more regularly at the discretion of the ORC.
(2) Litigation costs include only those costs which are considered non-recurring and outside of the ordinary course of business based on the following considerations, which we assess regularly: (i) the frequency of similar cases that have been brought to date, or are expected to be brought within two years, (ii) the complexity of the case (e.g., complex class action litigation), (iii) the nature of the remedy(ies) sought, including the size of any monetary damages sought, (iv) the counterparty involved, and (v) our overall litigation strategy.
(2) Litigation costs, net of insurance recoveries, include only those costs which are considered non-recurring and outside of the ordinary course of business based on the following considerations, which we assess regularly: (i) the frequency of similar cases that have been brought to date, or are expected to be brought within two years, (ii) the complexity of the case (e.g., complex class action litigation), (iii) the nature of the remedy(ies) sought, including the size of any monetary damages sought, (iv) the counterparty involved, and (v) our overall litigation strategy.
Other than the changes to our internal control over financial reporting described in "Actions Taken During 2024" above, there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended December 31, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Other than the changes to our internal control over financial reporting described in "Actions Taken During 2025" above, there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
ASC 350 permits an entity to first perform a qualitative assessment to determine whether it is more-likely-than-not (a likelihood of greater than 50%) that the fair value of a reporting unit is less than its carrying value. Management's annual goodwill impairment analyses in 2024 and 2023 indicated that goodwill was not impaired.
ASC 350 permits an entity to first perform a qualitative assessment to determine whether it is more-likely-than-not (a likelihood of greater than 50%) that the fair value of a reporting unit is less than its carrying value. Management's annual goodwill impairment analyses in 2025 and 2024 indicated that goodwill was not impaired.
Accordingly, we have determined these deficiencies in the aggregate constitute a material weakness. Our internal control over financial reporting as of December 31, 2024 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which is included herein.
Accordingly, we have determined these deficiencies in the aggregate constitute a material weakness. Our internal control over financial reporting as of December 31, 2025 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which is included herein.
Properties Our corporate headquarters is located in Scottsdale, Arizona pursuant to the terms of an approximately six-year lease that was entered into August 2023 for approximately 6,000 square feet of space. In addition, our subsidiaries and supported practices lease space for clinic services at each of our 569 centers.
Properties Our corporate headquarters is located in Scottsdale, Arizona pursuant to the terms of an approximately six-year lease that was entered into August 2023 for approximately 6,000 square feet of space. In addition, our subsidiaries and supported practices lease space for clinic services at each of our 572 centers.
Stock Performance Graph The following graph and related information shows a comparison of the cumulative total return for our common stock, Russell 2000 Composite Index ("Russell 2000") and Russell 2500 Health Care Index ("Russell 2500 Health Care") between June 10, 2021 (the date our common stock commenced trading on Nasdaq) through December 31, 2024.
Stock Performance Graph The following graph and related information shows a comparison of the cumulative total return for our common stock, Russell 2000 Composite Index ("Russell 2000") and Russell 2500 Health Care Index ("Russell 2500 Health Care") between June 10, 2021 (the date our common stock commenced trading on Nasdaq) through December 31, 2025.
We measure productivity by the number of visits that are performed by a clinician, which is driven by the time clinicians make available to see patients and our ability to fill clinician's schedules by attracting new patients, scheduling patients, and converting scheduled appointments to completed visits.
We measure productivity by the number of visits that are performed by a clinician, which is driven by the time clinicians make available to see patients and our ability to fill clinicians' schedules by attracting new patients, scheduling patients, and converting scheduled appointments to completed visits.
We believe that our existing cash and cash equivalents will be sufficient to fund our operating and capital needs for at least the next 12 months from the issuance date of our December 31, 2024 financial statements, without any additional financing.
We believe that our existing cash and cash equivalents will be sufficient to fund our operating and capital needs for at least the next 12 months from the issuance date of our December 31, 2025 financial statements, without any additional financing.
Based upon that evaluation, as a result of the material weaknesses in internal control over financial reporting described below, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of December 31, 2024 due to the material weaknesses described below.
Based upon that evaluation, as a result of the material weaknesses in internal control over financial reporting described below, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of December 31, 2025 due to the material weaknesses described below.
The 2024 Credit Agreement also contains a maximum Total Net Leverage Ratio financial maintenance covenant that requires the Total Net Leverage Ratio as of the last day of each fiscal quarter to not exceed 4.50:1.00.
The 2024 Credit Agreement also contains a maximum Total Net Leverage Ratio (as defined therein) financial maintenance covenant that requires the Total Net Leverage Ratio as of the last day of each fiscal quarter to not exceed 4.50:1.00.
Some of our third-party payor contracts are inherited through acquisitions of practices with existing contracts where we did not have an existing relationship with that payor in the market. During the years ended December 31, 2024, 2023 and 2022, two payors individually exceeded 10% of our revenue. Our payor relationships generally operate across multiple independent regional contracts.
Some of our third-party 45 payor contracts are inherited through acquisitions of practices with existing contracts where we did not have an existing relationship with that payor in the market. During the years ended December 31, 2025, 2024 and 2023, two payors individually exceeded 10% of our revenue. Our payor relationships generally operate across multiple independent regional contracts.
Additionally, the 2024 Credit Agreement also contains a maximum Interest Coverage Ratio financial maintenance covenant that requires the Interest Coverage Ratio as of the last day of each fiscal quarter to not be less than 3.00:1.00. As of December 31, 2024, we were in compliance with all financial covenants under the 2024 Credit Agreement.
Additionally, the 2024 Credit Agreement also contains a maximum Interest Coverage Ratio (as defined therein) financial maintenance covenant that requires the Interest Coverage Ratio as of the last day of each fiscal quarter to not be less than 3.00:1.00. As of December 31, 2025, we were in compliance with all financial covenants under the 2024 Credit Agreement.
Cash Flows (Used In) Provided By Financing Activities During the year ended December 31, 2024, financing activities used $9.9 million of cash, resulting primarily from borrowings of $287.8 million under the 2024 Credit Agreement, partially offset by payments of loan obligations of $289.5 million, payments of debt issue costs of $1.8 million and payments of contingent consideration of $6.4 million.
During the year ended December 31, 2024, financing activities used $9.9 million of cash, resulting primarily from borrowings of $287.8 million under the 2024 Credit Agreement, partially offset by payments of loan obligations of $289.5 million, payments of debt issue costs of $1.8 million and payments of contingent consideration of $6.4 million.
The consolidated financial statements included elsewhere in this Annual Report include the results of LifeStance Health Group, Inc., its wholly-owned subsidiaries and variable interest entities consolidated by LifeStance Health Group, Inc. in which LifeStance Health Group, Inc. has an interest and is the primary beneficiary for the years ended December 31, 2024, 2023 and 2022.
The consolidated financial statements included elsewhere in this Annual Report include the results of LifeStance Health Group, Inc., its wholly-owned subsidiaries and 49 variable interest entities consolidated by LifeStance Health Group, Inc. in which LifeStance Health Group, Inc. has an interest and is the primary beneficiary for the years ended December 31, 2025, 2024 and 2023.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None. Item 9A .
Item 9 . Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None. Item 9A .
The Company's Senior Vice President of IT Security ("SVP of IT Security") has over 35 years of experience in the informational technology field, with 19 years of healthcare IT experience with an emphasis in IT security and computer forensics .
The Company's Senior Vice President of IT Security ("SVP of IT Security") has over 35 years of experience in the informational technology field, with 20 years of healthcare IT experience with an emphasis in IT security and computer forensics .
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer and the oversight of our audit committee, has evaluated the effectiveness of our internal control over financial reporting as of December 31, 2024.
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer and the oversight of our audit committee, has evaluated the effectiveness of our internal control over financial reporting as of December 31, 2025.
We believe our guiding principle of creating a national platform built with a patient and clinician focus makes us a partner of choice for smaller, independent practices. Our acquisition strategy has been deployed both to enter new markets and in our existing markets.
We believe our guiding principle of creating a national platform built with a patient and clinician focus makes us a partner of choice for smaller, independent practices. Our acquisition strategy has been deployed both to enter new markets and to expand within our existing markets.
We expect our center costs, excluding depreciation and amortization to continue to increase in the short- to medium-term as we strategically invest to expand our business through our in-house clinician recruiting and de novo strategies and to potentially capture more of our market opportunity.
We expect our center costs, excluding depreciation and amortization to continue to increase in the short- to medium-term as we strategically invest to expand our business through our in-house clinician recruiting and new center strategies and to potentially capture more of our market opportunity.
These costs are summarized for each period in the table below: Year Ended December 31, 2024 2023 2022 (in thousands) Acquired center integration (1) $ 95 $ 702 $ 2,325 Former owner fees (2) — 187 376 Other (3) 77 897 1,390 Total $ 172 $ 1,786 $ 4,091 (1) Represents costs incurred pre- and post-center acquisition to integrate operations, including expenses related to conversion of compensation model, legacy system costs and data migration, consulting and legal services, and overtime and temporary labor costs.
These costs are summarized for each period in the table below: Year Ended December 31, 2024 2023 (in thousands) Acquired center integration (1) $ 95 $ 702 Former owner fees (2) — 187 Other (3) 77 897 Total $ 172 $ 1,786 (1) Represents costs incurred pre- and post-center acquisition to integrate operations, including expenses related to conversion of compensation model, legacy system costs and data migration, consulting and legal services, and overtime and temporary labor costs.
Liquidity and Capital Resources We measure liquidity in terms of our ability to fund the cash requirements of our business operations, including working capital needs, capital expenditures, including to execute on our de novo strategy, contractual obligations, debt service, acquisitions, settlement of contingent considerations obligations, and other commitments with cash flows from operations and other sources of funding.
Liquidity and Capital Resources We measure liquidity in terms of our ability to fund the cash requirements of our business operations, including working capital needs, capital expenditures, including to execute on our new center strategy, contractual obligations, debt service, acquisitions, settlement of contingent considerations obligations, and other commitments with cash flows from operations and other sources of funding.
Real Estate Optimization In connection with our expansion through de novo builds and acquisitions, in 2023, we announced a strategic re-focus, to prioritize resources and close certain centers as a direct result of changes to our business model driven by a shift to more virtual visits.
Real Estate Optimization In connection with our expansion through new centers and acquisitions, in 2023, we announced a strategic re-focus, to prioritize resources and close certain centers as a direct result of changes to our business model driven by a shift to more virtual visits.
During the year ended December 31, 2024, real estate optimization and restructuring charges consisted of certain gains and losses related to early lease terminations of previously abandoned real estate leases in 2023.
During the years ended December 31, 2025 and 2024, real estate optimization and restructuring charges consisted of certain gains and losses related to early lease terminations of previously abandoned real estate leases in 2023.
Comparison of the Years Ended December 31, 2023 and 2022 See discussion of the comparison of the years ended December 31, 2023 and 2022 in the Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 28, 2024, Part II - Item 7. “—Management's Discussion and Analysis of Financial Condition—Results of Operations”.
Comparison of the Years Ended December 31, 2024 and 2023 See discussion of the comparison of the years ended December 31, 2024 and 2023 in the Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 27, 2025, Part II - Item 7. “—Management's Discussion and Analysis of Financial Condition—Results of Operations”.
Other Information During our fiscal quarter ended December 31, 2024, none of our directors or officers (as defined in Rule 16a-1(f) under the Securities Exchange Act of 1934, as amended) entered into, modified (as to amount, price or timing of trades) or terminated (i) contracts, 54 instructions or written plans for the purchase or sale of our securities that are intended to satisfy the conditions specified in Rule 10b5-1(c) under the Exchange Act for an affirmative defense against liability for trading in securities on the basis of material nonpublic information or (ii) non-Rule 10b5-1 trading arrangements (as defined in Item 408(c) of Regulation S-K).
Other Information During our fiscal q uarter ended December 31, 2025, one of our directors or officers (as defined in Rule 16a-1(f) under the Securities Exchange Act of 1934, as amended) entered into, modified (as to amount, price or timing of trades) or terminated (i) contracts, instructions or written plans for the purchase or sale of our securities that are intended to satisfy the conditions specified in Rule 10b5-1(c) under the Exchange Act for an affirmative defense against liability for trading in securities on the basis of material nonpublic information or (ii) non-Rule 10b5-1 trading arrangements (as defined in Item 408(c) of Regulation S-K).
Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes that appear elsewhere in this Annual Report on Form 10-K.
Item 6 . [Reserved] 39 Item 7 . Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes that appear elsewhere in this Annual Report on Form 10-K.
Holders of Record As of February 19, 2025, there were approximately 29 stockholders of record for our common stock. The actual number of stockholders is greater than this number of record holders, and includes stockholders who are beneficial owners, but whose shares are held in street name by brokers and other nominees.
Holders of Record As of February 17, 2026, there were approximately 28 stockholders of record for our common stock. The actual number of stockholders is greater than this number of record holders, and includes stockholders who are beneficial owners, but whose shares are held in street name by brokers and other nominees.
Key Factors Affecting Our Results Expanding Center Capacity and Visits Within Existing Centers We have built a powerful organic growth engine that enables us to drive growth within our existing footprint. 40 Our Clinicians As of December 31, 2024, we employed 7,424 psychiatrists, APNs, psychologists and therapists through our subsidiaries and supported practices.
Key Factors Affecting Our Results Expanding Center Capacity and Visits Within Existing Centers We have built a powerful organic growth engine that enables us to drive growth within our existing footprint. Our Clinicians As of December 31, 2025, we employed 8,040 psychiatrists, APNs, psychologists and therapists through our subsidiaries and supported practices.
We believe we are an employer of choice in mental health, allowing us to employ highly qualified clinicians. We believe we have significant opportunity to grow our employed clinician base from our current base of 7,424 clinicians employed through our subsidiaries and supported practices, as of December 31, 2024.
We believe we are an employer of choice in mental health, allowing us to employ highly qualified clinicians. We believe we have significant opportunity to grow our employed clinician base from our current base of 8,040 clinicians employed through our subsidiaries and supported practices, as of December 31, 2025.
A majority of our revenue is derived from patients with commercial in-network insurance coverage – for the year ended December 31, 2024, our payor mix by revenue was 91% commercial in-network payors, 5% government payors, 3% self-pay and 1% non-patient services revenue.
A majority of our revenue is derived from patients with commercial in-network insurance coverage – for the year ended December 31, 2025, our payor mix by revenue was 90% commercial in-network payors, 5% government payors, 4% self-pay and 1% non-patient services revenue.
In addition, occupancy costs consisting of center rent and utilities and other center operating expenses consisting of office supplies and insurance contributed to the increase of $3.2 million.
In addition, occupancy costs consisting of center rent and utilities and other center operating expenses consisting of office supplies and insurance contributed to the increase of $6.4 million.
As of December 31, 2024, our remediation measures are ongoing and include the following: • performing additional training to ensure a clear understanding of risk assessment, controls and monitoring activities related to financial processes and IT general controls related to financial reporting; • performing detailed risk assessments for significant financial processes to identify, design, and implement control activities related to internal control over financial reporting; • development and implementation of controls related to the formalization of our accounting policies and procedures and financial reporting; • development and implementation of controls related to significant accounts and disclosures to achieve complete, accurate and timely financial accounting, reporting and disclosures, including controls over account reconciliations, segregation of duties and the preparation and review of journal entries; • development and implementation of IT security and governance controls to address program change of internally and externally developed systems and computer operations associated with information systems impacting the preparation of our consolidated financial statements; • development and implementation of controls related to the periodic monitoring and review of user access rights, segregation of duties conflicts, and, where it is determined there is a need for an individual to have conflicting access, a 53 periodic review of the underlying activities is performed by an independent person who does not have such conflicting access; • development and implementation of controls related to computer operations surrounding critical batch jobs and data backups; and • development and implementation of program change management controls, including new or material modifications, related to testing, authorization and implementation of program and data changes affecting financial IT applications and accounting records.
As of December 31, 2025, our remediation measures are ongoing and include the following: • hired an IT Manager with Sarbanes-Oxley Act experience who specializes in IT controls; • performing real-time training to ensure a clear understanding of risk assessment, controls and monitoring activities related to financial processes and IT general controls related to financial reporting; • performing detailed risk assessments for significant financial processes to identify, design, and implement control activities related to internal control over financial reporting; • development and implementation of controls related to the formalization of our accounting policies and procedures and financial reporting; • development and implementation of controls related to significant accounts and disclosures to achieve complete, accurate and timely financial accounting, reporting and disclosures, including controls over account reconciliations, segregation of duties and the preparation and review of journal entries; • development and implementation of IT security and governance controls to address program change of internally and externally developed systems and computer operations associated with information systems impacting the preparation of our consolidated financial statements; • development and implementation of controls related to the periodic monitoring and review of user access rights, segregation of duties conflicts, and, where it is determined there is a need for an individual to have conflicting access, a periodic review of the underlying activities is performed by an independent person who does not have such conflicting access; • development and implementation of program change management controls, including new or material modifications, related to testing, authorization and implementation of program and data changes affecting financial IT applications and accounting records; and • development and implementation of backup, monitoring and restoration controls for various applications, including payroll and revenue.
This was primarily due to a $91.8 million increase in center-based compensation due to the increase in patient visits of 1.0 million from the increase in the total number of clinicians from organic hiring.
This was primarily due to a $108.2 million increase in center-based compensation due to the increase in patient visits of 1.1 million from the increase in the total number of clinicians from organic hiring.
The 2024 Credit Agreement establishes commitments in respect of a senior secured term loan facility (the “Term Loan Facility”) and a senior secured revolving loan facility of up to $100.0 million (the “Revolving Facility”).
The 2024 Credit Agreement established a senior secured term loan facility (the “Term Loan Facility”) and a senior secured revolving loan facility of up to $100.0 million (the “Revolving Facility”).
We are one of the nation’s largest outpatient mental health platforms based on the number of clinicians we employ through our subsidiaries and our supported practices and our geographic scale, employing 7,424 licensed mental health clinicians across 33 states as of December 31, 2024. In 2024, our clinicians treated over 940,000 unique patients through approximately 7.9 million visits.
We are one of the nation’s largest outpatient mental health platforms based on the number of clinicians we employ through our subsidiaries and our supported practices and our geographic scale, employing 8,040 licensed mental health clinicians across 33 states as of December 31, 2025. In 2025, our clinicians treated over 1.0 million unique patients through approximately 9.0 million visits.
The following table sets forth a summary of the key financial metrics we review to evaluate our business, measure our performance, identify trends affecting our business, formulate our business plan and make strategic decisions: Year Ended December 31, 2024 2023 2022 (in thousands) Total revenue $ 1,250,970 $ 1,055,665 $ 859,542 Revenue growth 19 % 23 % 29 % Loss from operations (31,613 ) (189,134 ) (210,174 ) Center Margin 402,399 302,096 237,017 Net loss (57,443 ) (186,262 ) (215,564 ) Adjusted EBITDA 119,742 59,042 52,670 Center Margin and Adjusted EBITDA are not measures of financial performance under generally accepted accounting principles ("GAAP") and are not intended to be substitutes for any GAAP financial measures, including revenue, loss from operations or net loss, and, as calculated, may not be comparable to companies in other industries or within the same industry with similarly titled measures of performance.
The following table sets forth a summary of the key financial metrics we review to evaluate our business, measure our performance, identify trends affecting our business, formulate our business plan and make strategic decisions: Year Ended December 31, 2025 2024 2023 (in thousands) Total revenue $ 1,424,285 $ 1,250,970 $ 1,055,665 Revenue growth 14 % 19 % 23 % Income (loss) from operations 24,148 (31,613 ) (189,134 ) Center Margin 461,099 402,399 302,096 Net income (loss) 9,663 (57,443 ) (186,262 ) Adjusted EBITDA 157,671 119,742 59,042 Center Margin and Adjusted EBITDA are not measures of financial performance under generally accepted accounting principles ("GAAP") and are not intended to be substitutes for any GAAP financial measures, including revenue, income (loss) from operations or net income (loss), and, as calculated, may not be comparable to companies in other industries or within the same industry with similarly titled measures of performance.
We expect our general and administrative expenses to increase in the foreseeable future due to our planned investments to support company growth. Depreciation and amortization Depreciation and amortization expense decreased $9.4 million to $71.0 million for the year ended December 31, 2024 from $80.4 million for the year ended December 31, 2023.
We expect our general and administrative expenses to increase in the foreseeable future due to our planned investments to support company growth. 47 Depreciation and amortization Depreciation and amortization expense decreased $16.2 million to $54.8 million for the year ended December 31, 2025 from $71.0 million for the year ended December 31, 2024.
The stock price performance on the following graph represents past performance and is not necessarily indicative of possible future stock price performance. 6/10/2021 12/31/2021 12/31/2022 12/31/2023 12/31/2024 LifeStance Health Group, Inc. $ 100.00 $ 43.47 $ 22.56 $ 35.75 $ 33.65 Russell 2000 $ 100.00 $ 97.73 $ 77.75 $ 90.92 $ 101.41 Russell 2500 Health Care $ 100.00 $ 90.88 $ 64.95 $ 67.72 $ 69.79 The information above shall not be deemed “soliciting material” or to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that section, and shall not be incorporated by reference into any of our other filings under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended, regardless of any general incorporation language in those filings. 38 Securities Authorized for Issuance Under Equity Compensation Plans The information required by this item will be set forth in the Proxy Statement and is incorporated into this Annual Report on Form 10-K by reference.
The stock price performance on the following graph represents past performance and is not necessarily indicative of possible future stock price performance. 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 LifeStance Health Group, Inc. $ 43.47 $ 22.56 $ 35.75 $ 33.65 $ 32.15 Russell 2000 $ 97.73 $ 77.75 $ 90.92 $ 101.41 $ 114.39 Russell 2500 Health Care $ 90.88 $ 64.95 $ 67.72 $ 69.79 $ 84.91 The information above shall not be deemed “soliciting material” or to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that section, and shall not be incorporated by reference into any of our other filings under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended, regardless of any general incorporation language in those filings.
We partner with primary care physicians and specialist physician groups across the country to provide a mental healthcare network for referrals and, in certain instances, through virtual and physical co-location to improve the diagnosis and treatment of their patients.
We partner with primary care physicians and specialist physician groups across the country to provide a mental healthcare network for referrals and, in certain instances, through virtual and physical co-location to improve the diagnosis and treatment of their patients. Regulatory Trends On July 4, 2025, the OBBBA was enacted in the U.S.
Income Tax Benefit Income tax benefit decreased $20.1 million to $0.2 million for the year ended December 31, 2024 from $20.3 million for the year ended December 31, 2023 primarily due to being in a taxable income position and non-deductible equity awards for the year ended December 31, 2024.
Income Tax (Provision) Benefit Income tax (provision) benefit decreased $2.9 million to a provision of $2.7 million for the year ended December 31, 2025 from a benefit of $0.2 million for the year ended December 31, 2024 primarily due to being in a taxable income position and non-deductible equity awards for the year ended December 31, 2025.
Year Ended December 31, 2024 2023 2022 (in thousands) Net loss $ (57,443 ) $ (186,262 ) $ (215,564 ) Adjusted for: Interest expense, net 26,535 21,220 19,928 Depreciation and amortization 70,950 80,437 69,198 Income tax benefit (170 ) (20,321 ) (17,166 ) (Gain) loss on remeasurement of contingent consideration (1,725 ) (3,972 ) 1,688 Stock-based compensation expense 76,172 99,388 187,430 Loss on disposal of assets 363 112 218 Transaction costs (1) 827 89 722 Executive transition costs 644 636 1,274 Litigation costs (2) 1,591 51,034 851 Strategic initiatives (3) 1,292 3,925 — Real estate optimization and restructuring charges (4) (309 ) 10,970 — Amortization of cloud-based software implementation costs (5) 843 — — Other expenses (6) 172 1,786 4,091 Adjusted EBITDA $ 119,742 $ 59,042 $ 52,670 (1) Primarily includes capital markets advisory, consulting, accounting and legal expenses related to our acquisitions and to our underwritten public offering completed in the second quarter of 2024.
Year Ended December 31, 2025 2024 2023 (in thousands) Net income (loss) $ 9,663 $ (57,443 ) $ (186,262 ) Adjusted for: Interest expense, net 11,662 26,535 21,220 Depreciation and amortization 54,753 70,950 80,437 Income tax provision (benefit) 2,700 (170 ) (20,321 ) Gain on remeasurement of contingent consideration — (1,725 ) (3,972 ) Stock-based compensation expense 74,701 76,172 99,388 Loss on disposal of assets 123 363 112 Transaction costs (1) — 827 89 Executive transition costs 1,424 644 636 Litigation costs (2) 1,153 1,591 51,034 Strategic initiatives (3) — 1,292 3,925 Real estate optimization and restructuring charges (4) (134 ) (309 ) 10,970 Amortization of cloud-based software implementation costs (5) 1,626 843 — Other expenses (6) — 172 1,786 Adjusted EBITDA $ 157,671 $ 119,742 $ 59,042 (1) Primarily includes capital markets advisory, consulting, accounting and legal expenses related to our acquisitions and to our underwritten public offering completed in the second quarter of 2024.
By co-locating and driving toward integration with primary care and specialty providers, we can enhance our clinicians' access to patients. We anticipate that we will continue to grow these relationships while evolving our offering toward a fully-integrated care model in which primary care and our mental health clinicians work together to develop and provide personalized treatment plans for shared patients.
We anticipate that we will continue to grow these relationships while evolving our offering toward a fully-integrated care model in which primary care and our mental health clinicians work together to develop and provide personalized treatment plans for shared patients.
We had cash and cash equivalents of $154.6 million and $78.8 million as of December 31, 2024 and 2023, respectively.
We had cash and cash equivalents of $248.6 million and $154.6 million as of December 31, 2025 and 2024, respectively.
During the years ended December 31, 2024, 2023 and 2022, litigation costs included cash expenses related to three distinct litigation matters, including (x) a securities class action litigation, (y) a privacy class action litigation and (z) a compensation model class action litigation.
During the years ended December 31, 2025, 2024 and 2023, 44 litigation costs included cash expenses related to certain litigation matters, including a privacy class action litigation and a compensation model class action litigation, and for the years ended December 31, 2024 and 2023, a securities class action litigation.
The following table provides a reconciliation of loss from operations, the most closely comparable GAAP financial measure, to Center Margin: Year Ended December 31, 2024 2023 2022 (in thousands) Loss from operations $ (31,613 ) $ (189,134 ) $ (210,174 ) Adjusted for: Depreciation and amortization 70,950 80,437 69,198 General and administrative expenses (1) 363,062 410,793 377,993 Center Margin $ 402,399 $ 302,096 $ 237,017 (1) Represents salaries, wages and employee benefits for our executive leadership, finance, human resources, marketing, billing and credentialing support and technology infrastructure and stock-based compensation for all employees.
The following table provides a reconciliation of income (loss) from operations, the most closely comparable GAAP financial measure, to Center Margin: Year Ended December 31, 2025 2024 2023 (in thousands) Income (loss) from operations $ 24,148 $ (31,613 ) $ (189,134 ) Adjusted for: Depreciation and amortization 54,753 70,950 80,437 General and administrative expenses (1) 382,198 363,062 410,793 Center Margin $ 461,099 $ 402,399 $ 302,096 (1) Represents salaries, wages and employee benefits for our executive leadership, finance, human resources, marketing, billing and credentialing support and technology infrastructure and stock-based compensation for all employees. 43 Adjusted EBITDA We present Adjusted EBITDA, a non-GAAP performance measure, to supplement our results of operations presented in accordance with generally accepted accounting principles, or GAAP.
Additionally, TRPV increased year-over-year primarily driven by modest payor rate increases. We anticipate revenue growth to continue to be driven by our in-house clinician recruiting and de novo strategies as well as our ability to increase patient visits at existing centers through our ability to accommodate virtual sessions in addition to our in-person visits.
We anticipate revenue growth to continue to be driven by our in-house clinician recruiting and new center strategies as well as our ability to increase patient visits at existing centers through our ability to accommodate virtual sessions in addition to our in-person visits.
Operating Expenses Center costs, excluding depreciation and amortization Center costs, excluding depreciation and amortization increased $95.0 million, or 13%, to $848.6 million for the year ended December 31, 2024 from $753.6 million for the year ended December 31, 2023.
Operating Expenses Center costs, excluding depreciation and amortization Center costs, excluding depreciation and amortization increased $114.6 million, or 14%, to $963.2 million for the year ended December 31, 2025 from $848.6 million for the year ended December 31, 2024.
This was primarily due to the amortization of intangibles and depreciation during the periods. Other Expense Interest expense Interest expense increased $5.3 million to $26.5 million for the year ended December 31, 2024 from $21.2 million for the year ended December 31, 2023.
This was primarily due to the amortization of intangibles and depreciation during the periods. Other Expense Interest expense, net Interest expense, net decreased $14.8 million to $11.7 million for the year ended December 31, 2025 from $26.5 million for the year ended December 31, 2024.
This was primarily due to an increase of $194.1 million of patient service revenue and $1.2 million of nonpatient revenue. The increase in patient service revenue was mainly due to a net increase of 779 in total clinicians from organic hiring, resulting in an increase in patient visits of 1.0 million, or 15%.
This was primarily due to an increase of $174.0 million of patient service revenue slightly offset by a decrease of $0.7 million of nonpatient revenue. The increase in patient service revenue was mainly due to a net increase of 657 in total clinicians from organic hiring, resulting in an increase in patient visits of 1.1 million, or 14%.
We believe our successful de novo program and national clinician recruiting team can support additions of new centers and clinicians. We continue to utilize a more sustainable design for all new de novo centers that reimagines the mental healthcare experience for both patients and clinicians while reinforcing our commitment to sustainability.
We continue to utilize a more sustainable design for all new centers that reimagines the mental healthcare experience for both patients and clinicians while reinforcing our commitment to sustainability.
As a result, we completed a significant reduction in physical space and exited several underoccupied offices by both negotiating terminations of and abandoning certain real estate leases during 2023. We plan to continue to optimize our real estate footprint on a go-forward basis as part of our recurring operations.
As a result, we completed a significant reduction in physical space and exited several underoccupied offices by both negotiating terminations of and abandoning certain real estate leases during 2023.
In 2024, our clinicians treated more than 940,000 unique patients through approximately 7.9 million visits. We believe our ability to deliver more accessible, flexible, affordable and effective mental healthcare is a key driver of our patient growth.
We believe we have a significant opportunity to increase the number of patients we serve in our existing markets. In 2025, our clinicians treated more than 1.0 million unique patients through approximately 9.0 million visits. We believe our ability to deliver more accessible, flexible, affordable and effective mental healthcare is a key driver of our patient growth.
Cash Flows The following table summarizes our cash flows for the periods indicated: Year Ended December 31, 2024 2023 2022 (in thousands) Net cash provided by (used in) operating activities $ 107,260 $ (16,884 ) $ 52,789 Net cash used in investing activities (21,566 ) (60,340 ) (139,461 ) Net cash (used in) provided by financing activities (9,947 ) 47,427 47,264 Net increase (decrease) in cash and cash equivalents $ 75,747 $ (29,797 ) $ (39,408 ) Cash and cash equivalents, beginning of period 78,824 108,621 148,029 Cash and cash equivalents, end of period $ 154,571 $ 78,824 $ 108,621 Cash Flows Provided By (Used In) Operating Activities During the year ended December 31, 2024, operating activities provided $107.3 million of cash, primarily impacted by our $57.4 million net loss, net cash used by changes in operating assets and liabilities of $27.4 million and offset by non-cash charges of $192.1 million.
Cash Flows The following table summarizes our cash flows for the periods indicated: Year Ended December 31, 2025 2024 2023 (in thousands) Net cash provided by (used in) operating activities $ 146,151 $ 107,260 $ (16,884 ) Net cash used in investing activities (36,125 ) (21,566 ) (60,340 ) Net cash (used in) provided by financing activities (15,955 ) (9,947 ) 47,427 Net increase (decrease) in cash and cash equivalents $ 94,071 $ 75,747 $ (29,797 ) Cash and cash equivalents, beginning of period 154,571 78,824 108,621 Cash and cash equivalents, end of period $ 248,642 $ 154,571 $ 78,824 Cash Flows Provided By (Used In) Operating Activities During the year ended December 31, 2025, operating activities provided $146.2 million of cash, primarily impacted by our $9.7 million net income and non-cash charges of $176.8 million and slightly offset by net cash used by changes in operating assets and liabilities of $40.3 million.
Fair value estimates are based on the assumptions management believes a market participant would use in pricing the asset or liability. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available.
Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available.
Cash Flows Used In Investing Activities During the year ended December 31, 2024, investing activities used $21.6 million of cash resulting from our purchases of property and equipment. During the year ended December 31, 2023, investing activities used $60.3 million of cash, primarily resulting from our business acquisitions totaling $19.8 million and purchases of property and equipment of $40.5 million.
Cash Flows Used In Investing Activities During the year ended December 31, 2025, investing activities used $36.1 million of cash resulting from our purchases of property and equipment. During the year ended December 31, 2024, investing activities used $21.6 million of cash resulting from our purchases of property and equipment.
Based on that assessment and due to the material weaknesses described below, our management has concluded that the Company’s internal control over financial reporting was not effective as of December 31, 2024. 52 A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated financial statements will not be prevented or detected on a timely basis.
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated financial statements will not be prevented or detected on a timely basis.
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